Parks Tau, the trade and market minister, has postponed naming a successful bidder to run South Africa’s lottery once the tenure of recent operator, Ithuba, ends in Could up coming year.
Ithuba’s licence was owing to own expired in Might 2023 but was prolonged for 2 yrs by Tau’s predecessor Ebrahim Patel following a request via the then newly-appointed board with the National Lotteries Commission (NLC).
The Board, which was addressing the corruption that had overwhelmed the NLC, also suggested Patel of representations by Ithuba that it had been severely impacted with the Covid pandemic. This bundled a ban on the sale of lottery tickets at the peak of the pandemic.
With regards to the extension, Ithuba had to produce contributions towards the NLC for distribution to great leads to at a higher level than furnished for within their initial licence.
New licence operators are specified six months to create infrastructure, such as ticket equipment countrywide, to just take over with the previous operator prior to the incumbent’s licence finishes. This newest postponement signifies that there won't be ample time for a smooth transition and It really is unlikely that Tau will lengthen Ithuba’s licence once again.
The entire process of appointing a different licence operator has also been stricken by allegations of conflict of desire as well as other concerns.
GroundUp has realized that the NLC has contingency designs in position to continue funding superior brings about for around a calendar year If your lottery as well as the sale of lottery tickets are suspended.
The contingency also handles funding inside the party of litigation by dropping bidders any time a new operator is ultimately introduced, which could also derail The graceful running in the lottery.
Just in case ticket sales are stopped, the NLC will use its reserves of R3.9-billion to continue funding qualifying organisations, a source with knowledge of the contingency program advised GroundUp.
In his weekend statement announcing the postponement, Tau stated: “Regrettably, I am not in a position to make a remaining conclusion at this time. Any this sort of choice presently would in all fantastic conscience suggest which i have not utilized my thoughts with thanks consideration of all the suitable elements.”
“I've discovered matters that call for further more evaluation. It might be inappropriate to disclose these difficulties now as well as their disclosure could very very well prejudice the appropriate adjudication from the awarding on the licence.”
Tau reported he was awaiting guidance on the best way to ensure the continuation of the lottery within the interim along with the “growth of a programme to finalise this method”.
This, he reported, needs to be performed following consultation Using the National Treasury.”
Tau also hinted on the political makeup of the consortiums bidding for that licence as Yet another feasible cause of the postponement.
He claimed: “I must also make sure the proprietors and supervisors of the prosperous applicants are, as the Act states, ‘suit and good persons’. On top of that, I must be certain that no political celebration or political Business office-bearer has any immediate economical interest within the applicant or even a shareholder on the applicant.”
Business enterprise Working day described Formerly that a lot of of the businesses shortlisted to the tender are politically exposed.
The Gold Rush consortium is led by higher-profile businessperson Sandile Zungu, who challenged with the ANC KwaZulu-Natal chair posture in 2022 in advance of dropping out immediately after he did not garner adequate assistance, the paper claimed.
A different politically related bidder is HCI, that's vast majority-owned with the South African Outfits and Textile Workers’ Union, an affiliate of Cosatu, that's in alliance with the ANC. CEO Johnny Copelyn donated to President Cyril Ramaphosa’s CR17 marketing campaign for the ANC presidency.
An additional shortlisted bidder, As outlined by Business enterprise Working day, is Thebe Investment Company, which was Established by ANC leaders in 1992. Thebe is fifty percent-owned by Batho Batho Have confidence in. The trust has donated R60-million towards the ANC given that 2021, In keeping with declarations manufactured towards the electoral commission.
Ithuba, the holder of your licence, is additionally in the managing, as is Umbulelo Consortium, led by Afrirent Holdings; and Giya Video games, As outlined by Company Day.
Vivien Natasen consulted for Giya Games on its bid. GroundUp noted in 2022 that Natasen, by way ofตรวจ สลากกินแบ่ง รัฐบาล his organization Neo Alternatives, contributed R2-million to the luxury mansion from the then-NLC chair Aflred Nevhutanda — although his firm Neo Alternatives had a contract Together with the NLC. Natasen advised GroundUp at that time that Neo Solutions was “appointed through the NLC’s supply chain procedures, as and when expert services are essential”.